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Indian ETFs Fall on Widespread Corporate Reform; Plunging Rupee

  +Follow August 16, 2013 4:13PM
Tickers Mentioned:

Investors in the emerging market of India were rocked Friday, as the country plans to concomitantly rework their outdated 57-year-old corporate legislative laws and address a rapidly devaluing currency. 

India has long been plagued by corruption. Kickbacks, gift and outright fraud are commonplace, as unscrupulous players take advantage of a financial system that has failed to keep pace with an increasingly complex global economy.

In 2009, the country was rocked by a massive fraud case involving the company Satyram Computer Services. The chairman confessed to overstating company assets and earnings by over $1 billion. The scandal, often called "India's Enron," made it clear the country lacked a proper oversight body and laws sophisticated enough to deal with modern finance.

The country is simultaneously scrambling to also stabilize the rupee, which is the worst performing emerging market currency in comparison to the dollar. The Reserve Bank of India is taking action and imposing controls to increase overseas direct investments, as the diminishing value of the country’s currency has made it more difficult for Indian corporations to buy assets outside the country.

India has also had to deal with inflation and a widening current account deficit. The corporate reforms and worsening economy coupled to spook investors and trigger an ETF sell-off.

Indian ETFs across the board retreated on Aug. 16. iPath MSCI India Index (INDA) dropped 4.84 percent to hit $21.41 a share. PowerShares India ($PIN) dropped 4.64 percent to hit $15.62 a share. WisdomTree India Earnings ($EPI) fell 4.53 percent to hit $14.76 a share.

The biggest loser on the day was Direxion Daily India Bull 3X Shares ($INDL), which plummeted 12.89 percent to hit $10.72 a share amid eight times normal volume. 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

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Results for PIN
1 Oct 14 00:35:57
Obama, Modi discuss stronger economic ties http://t.co/PmeilsR7mw $EPI $SCIF $INDY $PIN
Alexander Nikolov
30 Sep 14 01:13:21
the only markets that are still in uptrend & are holding steady are $SPX, $PIN, $EWJ.... and that's all as far as I can see.
Kristin Kuster
29 Sep 14 15:48:33
Question is: how will our giant U-M football dollar$ $pin thi$ one. Plea$e, pretty plea$e, ADMIT it was a huge mi$take & negligible. #PLEA$E
قروبات بلاك بيري
29 Sep 14 14:30:16
#قروبات_بلاك_بيري $PIN: 7E19B64E: سولف وناسة +18 http://t.co/UrsL1DcnsC #لستات #الامارات
Harriet Tubman
29 Sep 14 12:53:26
We still have to research voting patterns of our Senators Congressmen and local politicians. They may $pend for $pin but we see facts = Vote
Robert Hap Sneddon
29 Sep 14 12:43:44
Top 5 Weekly RSI Country Rankings: $THD (Thailand), $SPY (US), $PIN (India), $EWN (Netherlands), $EWJ (Japan)
28 Sep 14 17:21:32
Closed two positions for small losses as trends reversed in China and India. $FXI $YINN $INDY $INDL $EPI $PIN
Jason Rodrigues
28 Sep 14 09:49:01
#BSE #NSE #Sensex #india #elliottwave $INP $PIN $EPI $INDZ $INDL http://t.co/rSfqpiCCYp
تعارف بلاك بيري
27 Sep 14 13:29:07
#تعارف_بلاك_بيري $PIN: 7E19B64E: ابي بنت رومانسية http://t.co/t9NwZRE1WY #الامارات #السعودية
قروبات بلاك بيري
27 Sep 14 13:10:53
#قروبات_بلاك_بيري $PIN: 7E19B64E: وناسة سوالف+18\r\n<3 http://t.co/kk8N9tI15L #لستات #الامارات
ETF Trends
26 Sep 14 16:50:13
#India ETFs Look Sturdier After S&P Upgrade http://t.co/1vTN4tyQNB #ETF #emergingmarkets #modi $EPI $INDA $PIN
Tom Lydon
26 Sep 14 16:45:15
#India ETFs Look Sturdier After S&P Upgrade http://t.co/EHexe92RAO #ETF #emergingmarkets #modi $EPI $INDA $PIN
Dimitra DeFotis
26 Sep 14 07:12:27
India Debt Outlook Improving, S&P Says http://t.co/IUcCgE71KE via @barronsonline $PIN $EPI $EEM
Dimitra DeFotis
25 Sep 14 09:38:04
India Yanks Coal Mining Licenses, Exposing Debt & Risk In Emerging Markets http://t.co/hU6hVpsC2d via @barronsonline $IBN $EPI $PIN $EEM
Polish Prince
25 Sep 14 05:27:23
RT @BryceT_SOM: Check out 'Money $pin' by Bryce T http://t.co/hUpq2wmbmf #DJsloveBryceTmusic http://t.co/rWxm0k3ic4
Seeking Alpha
24 Sep 14 10:20:37
India: A Bright Spot In Emerging Markets http://t.co/aeeiBA5LAw $EPI $SCIF $INDY $PIN $INDL $INP $INXX $INDA $SCIN $SMIN $INCO
Money Morty
23 Sep 14 16:45:23
RT @BobPisani: Stocks near lows of day $DIA $SPY...European stocks weaker Germany $EWG down 1.2%, emerging markets again lower...Brazil $E…
23 Sep 14 08:29:46
RT @BobPisani: Stocks near lows of day $DIA $SPY...European stocks weaker Germany $EWG down 1.2%, emerging markets again lower...Brazil $E…
Jake Catskill
23 Sep 14 08:18:16
RT @BobPisani: Stocks near lows of day $DIA $SPY...European stocks weaker Germany $EWG down 1.2%, emerging markets again lower...Brazil $E…
Bob Pisani
23 Sep 14 08:17:53
Stocks near lows of day $DIA $SPY...European stocks weaker Germany $EWG down 1.2%, emerging markets again lower...Brazil $EWZ, India $PIN
Rex Ballaso
23 Sep 14 07:21:20
@BrianKellyBK is it time to buy $PIN ahead PM Modi speech @TheGarden this Sunday?
  +Follow August 16, 2013 4:13PM



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